INDEX SCREEN DEFINITIONS FOR THE ESG ADVANCED EQUITY SUITE
Many of our iShares sustainable ETFs seek to track an index with business involvement screens. Business involvement screens seek to remove exposure to controversial business activities that may pose risks or violate an investor’s preferences. Learn more about the specific screens below.
Note: Fossil fuels, nuclear power and palm oil follow a three-step approach, whereby companies are excluded on conditional bases.
SCREEN | DEFINITION |
---|---|
Adult entertainment | Companies that produce, direct, or publish certain adult entertainment materials; companies with 5% or more aggregate revenue from production, distribution, or retail. |
Alcohol | Companies with 5% or more revenue from manufacturing; Companies with at least USD 500 million revenue or 15% aggregate revenue from manufacturing, distributing, retailing, licensing, and supplying alcohol-related products. |
Civilian firearms | Companies that manufacture, derive 5% or more aggregate revenue or USD 20 million or more revenue from the production and distribution (wholesale or retail) of firearms or small arms for civilian use. |
Conventional weapons | Companies deriving 5% or more revenue from the production of conventional weapons and components or 10% or more aggregate revenue from weapons systems, components, and support systems and services. |
Controversial weapons | Companies with any tie to Controversial Weapons (cluster munitions, landmines, depleted uranium weapons, biological/chemical weapons, blinding lasers, non-detectable fragments and incendiary weapons), as defined by the methodology of the MSCI Global Ex-Controversial Weapons Indexes. |
For profit prisons | Companies with 50% or more revenue from involvement in the operation of “For profit prisons” or the provision of integral services to these types of facilities. |
Fossil fuels |
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Gambling | Companies with 5% or more revenue from ownership or operation gambling facilities, companies with at least USD 500 million revenue or 15% aggregate revenue from ownership or operation, provision of key products and services, and licensing gambling-related business activities. |
Genetically modified organisms (GMOs) | Companies with any revenue from genetically modifying plants and other organisms intended for agriculture or human consumption. |
Nuclear power |
|
Nuclear weapons | Companies that manufacture nuclear warheads and/or whole nuclear missiles, components, delivery platforms or provide auxiliary services related to nuclear weapons. |
Palm oil |
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Predatory lending | Companies with 5% or more revenue from products and services associated with certain controversial lending practice. |
Tobacco | Manufacturers; Companies with 5% or more aggregate revenue from manufacture, distribution, retailing, licensing, and supply tobacco products. |